All Posts

PF ceiling to be decreased from 20 to 10 employees as per recommendation to labour ministory

Government is in process to reduce the minimum number of employees from 20 to 10. The reduction in limit will bring around 50 Lakh employees in Provident Fund scheme. Currently establishments employing 20 or more than 20 are required to compulsory enroll under EPFO.

Even the letter from EPFO to labour department has recommended that definition of employee, employer and basic wages should be redifined.

The aim of these amendments is to provide social security to more and more employees. Additional 50 lakh employees will be covered under EPFO if these amendments are implemente.